2-2-06 - LIABILITY UPDATE - Medical liability reform in the State of the Union, more....

by Donna Baver Rovito, Editor, "Liability Update"
Author, "Pennsylvania's Disappearing Doctors"

This LIABILITY UPDATE "newsletter" is a free service which I provide, as a volunteer, to help provide medical liability reform and crisis information to physicians, patients and physician advocates.  I do not work for any physician advocacy organization.

Opinions and clarifications are my own, and do NOT reflect the official position of any physician or patient advocacy organization unless stated as such.  Opinions are placed in double parentheses ((xxxxxx)), italicized and appear in blue. 

This Update is emailed to approximately 7,500 health professionals and physician and patient advocates.


PLEASE FORWARD THIS IMPORTANT INFORMATION TO EVERY HEALTH CARE PROFESSIONAL YOU KNOW AND SEND ME MORE EMAIL ADDRESSES SO WE CAN GET THIS INFORMATION TO MORE OF THE PEOPLE WHO NEED IT 

Feb. 1, 2006

FROM: Peter DuBois

Chairman, Californians Allied for Patient Protection

 

"If ever there was a time for a national push to contain the skyrocketing cost of healthcare it is now. The gold standard in medical liability reform law is California's Medical Injury Compensation Reform Act (MICRA). This landmark law has been proven to promote patient access to care by reducing and stabilizing medical liability insurance costs.

"Medical liability reform is a patient protection issue, not a partisan issue, and we urge all members of Congress to support it. In California, MICRA passed with overwhelming Democratic and Republican support and was signed by a Democratic Governor.

"The landmark law has discouraged expensive and unnecessary "defensive" medical procedures, and has been effective in making healthcare available in rural and low-income areas. The federal government pays for 50% of all health care in the United States. MICRA-like reform means more care for patients. It means dollars spent on treatment and training, rather than being siphoned away to legal and courtroom expenses.

"After 30 years experience with MICRA, we know that this reform works. Recent studies have concluded that efforts to deviate from the current delicate balance -- raising the lid on non-economic medical liability awards, for example -- would cause insurance rates to soar, lead doctors to reduce services for those most at risk or even quit practice.

"We caution lawmakers that deviations from the current MICRA model would likely have devastating consequences for patients. MICRA maintains access to care while helping to control costs."

 

9...Washington Post

Dispelling Malpractice Myths
Tuesday, January 24, 2006

By William R. Brody

News reports of recent efforts to reduce malpractice insurance costs have missed what is needed: genuine reform of the medical justice system.

A good way to start is by jettisoning some commonly held misperceptions about the current malpractice system. Call them the “Myths of Malpractice.” Here’s what is really going on:

Myth No. 1: The medical malpractice crisis is someone else’s problem, not mine.

Premiums paid for malpractice insurance directly affect everyone’s access to needed care and the cost of this care. Some excellent doctors are leaving practice in the face of unaffordable insurance premiums. Others are cutting back on the services they offer. To the limited extent allowed, doctors and hospitals pass increased malpractice insurance expenses on to patients and their health insurers.

If we don’t fix the problems with the malpractice system, you may lose your doctor. You certainly will pay more for your care.

Myth No. 2: We need to preserve the current legal system to guarantee a fair hearing and provide compensation for patients harmed by the health care system.

The medical justice system today is mostly random; it has become essentially a lottery. Hardly anyone seems to know this, although the facts are on the public record. A 1991 New England Journal of Medicine study found that nine out of 10 victims of disability-causing malpractice go uncompensated. That’s right — overwhelmingly, people harmed through medical mishaps are not compensated.

And a recent study by Harvard University researchers found that 80 percent of malpractice claims were filed against doctors who had made no error whatever. For instance, recent articles in scientific journals have documented that many, if not most, cases of birth-related cerebral palsy — cases in which juries tend to be highly sympathetic to plaintiffs — are not the result of malpractice by obstetricians. Juries often deliver sizable awards against providers who commit no errors for what are unfavorable, but random, outcomes of nature.

Myth No. 3: The malpractice system is necessary to punish and remove incompetent health care providers.

Unfortunately, the system that rarely provides just compensation for patients also perversely protects doctors who should be removed from practice, by enabling them to sue other physicians who might step forward to question their competence. This undoubtedly has a chilling effect on whistle-blowing, and those who regulate doctors are often reluctant to suspend or revoke licenses without expert medical testimony.

Nor does the current liability system provide a way to make health care safer. Physicians, nurses and other professionals want to provide quality care, but they are human and make mistakes. What we need is a system that allows health care providers to work together to study errors and put practical improvements in place to prevent recurrences. The current system discourages doctors from talking about system failures for fear of being sued.

Myth No. 4: Malpractice costs are not a big deal — they amount to less than 2 percent of total health care costs.

The number sounds insignificant until you stop to consider that U.S. health care spending was a staggering $1.66 trillion in 2003 — so we’re talking costs on the order of $16 billion to $32 billion.

In the case of Johns Hopkins Medicine, malpractice premiums as a percentage of physicians’ total income have risen threefold over the past four years. In 2001 malpractice premiums were about 3 percent of total physician income at Johns Hopkins. They are nearly 10 percent today — and growing.

The irrationality of our current medical justice system leads to the practice of “defensive medicine,” in which doctors try to stave off lawsuits by ordering more tests than are medically necessary. Got a headache? You’re as likely to get a CAT scan as a couple of aspirin. The added costs of defensive medicine are estimated at $50 billion to $100 billion per year.

Myth No. 5: The current malpractice insurance system is in crisis because insurance companies are trying to cover losses from unwise financial investments made during the dot-com boom.

Malpractice insurance rates are skyrocketing in large part because of the increasing size of malpractice awards. Nationally, median jury awards for medical malpractice doubled from 1995 to 2000, increasing from $500,000 to $1 million. Median out-of-court settlements also were up significantly during that time, rising 40 percent from $350,000 to $500,000.

Hospitals and doctors often settle cases out of court, even when they know they’ve done nothing wrong, because they fear the whim of unpredictable juries. Higher jury awards and settlements invariably mean higher malpractice insurance premiums and medical costs.

Our system of medical justice is fair to no one but malpractice lawyers. Nationally, attorneys and the legal system gobble up about 60 percent of the costs involved with malpractice cases and awards. They are the true winners in this system — and patients, hospitals and the general public are paying higher prices to subsidize the purchase of tickets for our medical lottery.

A few new caps on liability costs won’t solve the problem. It’s time we begin a comprehensive reform of the medical justice system.

 

10....Reuters

Primary care about to collapse, physicians warn

By Maggie Fox, Health and Science Correspondent - Jan. 30, 2005

 

Primary care -- the basic medical care that people get when they visit their doctors for routine physicals and minor problems -- could fall apart in the United States without immediate reforms, the American College of Physicians said on Monday.

"Primary care is on the verge of collapse," said the organization, a professional group which certifies internists, in a statement. "Very few young physicians are going into primary care and those already in practice are under such stress that they are looking for an exit strategy."

Dropping incomes coupled with difficulties in juggling patients, soaring bills and policies from insurers that encourage rushed office visits all mean that more primary care doctors are retiring than are graduating from medical school, the ACP said in its report.

The group has proposed a solution -- calling on federal policymakers to approve new ways of paying doctors that would put primary care doctors in charge of organizing a patient's care and giving patients more responsibility for monitoring their own health and scheduling regular visits.

U.S. doctors have long complained that reimbursement policies of both Medicare and private insurers reward a "just-in-time" approach, instead of preventive care that would save money and keep patients healthier.

"Medicare will pay tens of thousands of dollars ... for a limb amputation on a diabetic patient, but virtually nothing to the primary care physician for keeping the patient's diabetes under control," said Bob Doherty, senior vice president for the ACP.

The ACP plan called for innovations such as using e-mail to consult on minor and routine matters, freeing up expensive office visit time for when it is needed. Doctors would be compensated for an e-mail consultation.

The proposals include incentives for doctors to work more efficiently and to provide better care, ACP President Dr. C. Anderson Hedberg told a news conference. "ACP proposals would provide patients with access to care that is coordinated by their own personal physician," Hedberg said.

YOUNG DOCTORS AVOIDING PRIMARY CARE

The ACP cited an American Medical Association survey that found 35 percent of all physicians nationwide are over the age of 55 and will soon retire.

In 2003, only 27 percent of third year internal medicine residents actually planned to practice internal medicine, the group said, with others planning to go into more lucrative specialty jobs.

"Primary care physicians -- the bedrock of medical care for today and the future -- are at the bottom of the list of all medical specialties in median income compensation," the ACP said.

The group, which represents 119,000 doctors and medical students in general internal medicine and subspecialties, joins others that warn the U.S. health care system is untenable.

"If these reforms do not take place, within a few years there will not be enough primary care physicians to take care of an aging population with increasing incidences of chronic diseases," said Dr. Vineet Arora, chair of the College's Council of Associates.

Dr. Sara Walker, a Missouri physician, said she believed doctors were leaving general practice because of drops in Medicare reimbursement to doctors.

"A drop in Medicare payments will not only force me to stop taking Medicare patients but could force me out of business," agreed Dr. Kevin Lutz, a solo practitioner in Denver.

 

 

 

11.... Health Care News

Litigation Raising Health Care Costs, Study Says
Written By: Susan Konig
January 1, 2006
Publisher: The Heartland Institute

 

An October 2006 report from the Manhattan Institute shows the efforts of trial lawyers to target health care providers for profit are raising U.S. health care costs.

Trial Lawyers, Inc.: Health Care, from scholars at the institute's Center for Legal Policy, concludes this area of litigation is significant because "health care represents over 15 percent of the U.S. economy, up from only 5 percent in 1961" according to U.S. Centers for Medicare and Medicaid Services (CMS) data. "While the excesses of the litigation industry alone cannot explain America's mounting medical costs," the study notes, "litigation is a large, and growing, contributor to our health-care bill."

'Tort Tax' Raises Costs

Medical malpractice liability--"the 'tort tax' on doctors and hospitals, whose costs constitute the majority of health expenses," as it is described in the report--has grown much faster than overall health care inflation, according to 2004 data from the global management corporation Tillinghast-Towers Perrin. Medical malpractice liability alone constitutes more than 10 percent of the U.S. tort tax, which by 2003 represented more than $3,300 for the average family of four, according to Tillinghast-Towers Perrin.

Medical malpractice tort claims awarded by courts, as well as pretrial settlements, provide U.S. trial lawyers with their largest health care sector revenue stream, according to the Manhattan Institute report. Litigation over pharmaceuticals and medical devices also exacts a staggering cost on the industry, notes James R. Copland, director of Manhattan's Center for Legal Policy.

The drug maker Wyeth, for example, has set aside a reserve of $21 billion to deal with litigation related to the obesity medication Fen-Phen. Merck's exposure to Vioxx lawsuits may total as much as $50 billion, the report notes.

"Such figures are astronomical in comparison with these companies' individual budgets, representing nine to twelve times each company's annual research and development costs," the report notes. "In fact, since each drug was widely used for only about four years, the approximate annualized liability cost of these two drugs comes to almost $18 billion--equivalent to 10 percent of the annual revenues for the pharmaceutical industry as a whole."

Looking ahead, the big story for 2006 will be Vioxx litigation, says Center for Legal Policy Director James Copland.

"Expect Merck to lose more multimillion dollar verdicts (though it will win its share, too)," Copland predicted. "Unless Congress acts to correct mass tort litigation for pharmaceuticals, the cost of Vioxx lawsuits for Merck will continue to rise--to $50 billion or more."

Defensive Medicine Costly

The direct costs of health care litigation only scratch the surface of the toll such lawsuits exact on the U.S. economy and on health care, the Manhattan Institute report emphasizes. "Med-mal lawsuits tend to inflate health care costs by encouraging 'defensive medicine'--unnecessary procedures and referrals that doctors and hospitals prescribe in order to limit their exposure to future litigation," explains the report. "Studies suggest that defensive medicine costs are several times higher than the direct liability costs themselves."

The report contends consumers are not made safer by product liability litigation over drugs and medical devices: "Such suits inevitably drive innovation from the marketplace that would lead to net health improvements--not only for U.S. society but for the entire world."

Since any drug manufacturer might be held accountable for unanticipated liability of the magnitude of Vioxx and Fen-Phen, the study notes, every drug company will consider such numbers in its research and investment decisions ... and many drugs that would otherwise save lives or improve the quality of lives will never reach the market.

Defenders of tort litigation assert it has a deterrent effect on risky or negligent activity, which it undoubtedly does, Copland admitted. But "in our current civil justice system it also deters any activity that might lead to high-cost lawsuits, which is not at all the same thing as actual risk," he pointed out in an introduction to the report.

When a liability system punishes indiscriminately, it does not efficiently deter bad conduct but rather reduces health care access by reducing the supply of doctors, the report says. Fear of litigation also encourages the use of expensive, unnecessary, and often dangerous procedures, and it lowers the expected return from research into new medicines and medical devices that can save lives.

The report also notes the litigation industry "does a very poor job compensating the victims it professes to be protecting." Most medical malpractice claimants are not harmed by avoidable doctor error, and most medical malpractice victims never sue. Plaintiffs typically wait years to recover damages and typically receive less than 50 cents on the dollar, with lawyers' and administrative fees soaking up the majority of settlements and verdicts.

Lawsuits Threaten Vaccine Production

Medical malpractice litigation will continue to affect targeted specialties, such as obstetrics, neurology, and emergency room care, Copland said. The variation will be sizable among states. Some states, having passed recent tort reform legislation, will get better; others, like Wisconsin, have worsened their situation through judicial activism, noted Copland.

"Nationally, I wouldn't expect as rapid a rise in premiums as we have seen in recent years, because the past few years' rate increases have helped return insurers to a manageable position, and because I expect a flat-to-rising interest rate environment, which lowers the discounted cost of insurers' liabilities," Copland said.

"A key fight at the national level to watch in 2006 is whether the government can craft a coherent response to the potential avian flu outbreak," said Copland. "Vaccines are particularly susceptible to litigation, and although Congress has shielded some existing vaccines from liability, new vaccines and other drugs vital to public health threats remain vulnerable."

Susan Konig (konig@heartland.org) is managing editor of Health Care News.

For more information ...The Manhattan Institute's Trial Lawyers, Inc.: Health Care report is available online at http://www.triallawyersinc.com/healthcare/hc01.html.

 

12....I-Newswire

Malpractice Litigation is Driving Mammography Toward Extinction
FOR IMMEDIATE RELEASE
February 1, 2006
Port Charlotte, FL

Mammography is still the only reliable tool available to diagnose breast cancer in its earliest and most treatable stages, though it can have up to a 30% miss rate. In The Death of Mammography (Caveat Press 2006 ), co-authors Rene' Jackson, RN BSN MS and Alberto Righi, MD, present a sharp critique of the failures of the medical liability system in the United States, as it pertains to "failure to diagnose breast cancer on mammography" litigation.
Leonard Berlin, M.D., F.A.C.R., Chairman Department of Radiology Rush North Shore Medical Center in Illinois says, "It is a combination of two books: one, an encyclopedia of knowledge regarding breast cancer and mammography; the other, a treatise on malpractice litigation and its impact on the practice of medicine in general, along with a first-hand account of a malpractice lawsuit focusing on a radiologist’s alleged missing of a tiny cancer on a mammogram. It calls into question, if not casts doubt on the 'I’ll get a mammogram - - my breast cancer will be diagnosed early and I’ll be cured - - and if not, I’ll sue the radiologist' mentality."

"The Death of Mammography, more than any other book on the U.S. litigation crisis and failures, captures the essence of the problem in a highly charged emotional situation," comments John Thomas, President and Chief Development Officer of Cirrus Health in Texas.

Pamela Seay JD, Associate Professor, Division of Justice Studies at Florida Gulf Coast University says, "It is an important work addressing a crucial issue in women's health."

Rene' Jackson, R.N., B.S.N., M.S. is a Special Procedures Nurse in Medical Imaging at Charlotte Regional Medical Center, Punta Gorda, Florida. Author of more than forty healthcare and nursing articles, she is also a reviewer and contributor for many professional manuals.

Alberto Righi, M.D. is the medical director of a radiology group in Florida. He obtained his M.D. at the University of South Florida; his radiology specialty at Tulane; and his neuroradiology specialty at the U. of Miami

"The Death of Mammography: How Our Best Defense against Breast Cancer Is Being Driven to Extinction", will be released January 2006.

Co-authored with physician colleague, Alberto Righi, M.D., the book is about breast cancer and mammography and that if we continue on our current course, very shortly mammography will no longer be available widely, or at all, for the diagnosis of breast cancer.

((Excerpt))

Breast Cancer and Mammography

Cancer has been with us since the dawn of mankind. At one time people thought cancer was a product of industrialization, but archaeological finds would reveal that the oldest specimen of cancer found in a human was discovered in the remains of a female skull sometime during the Bronze Age between 1900 and 1600 BC. Breast cancer has been documented since the 17th century BC, though back then it was treated with pretty barbaric means. The history of cancer, and breast cancer in particular, is varied, and can be found in "The Death of Mammography".

Can We Save The Mammogram?

The art and science of mammography are not infallible even under the most carefully controlled conditions, however a reduction in mortality from breast cancer has been exhaustively proven. The reason: early diagnosis. Even though the signs of early breast cancer can be very subtle, mammography is a woman's best bet for the survival of breast cancer.

In 2004, the American Cancer Society reports that 215,990 new breast cancer cases in women will be diagnosed, and 40,100 will die of it. Women are encouraged to get a mammogram every one-two years, after the age of 50. However, women have been misled, and are under the false impression that mammography is foolproof, and if the exam is done early enough and often enough, breast cancer can be detected, treated, and contained. In all cases, even under the most optimal circumstances, research has shown that as high as thirty percent of breast cancers are not visualized on mammography. It does not mean the radiologist is negligent. It means that mammography has become the most frequent modality in lawsuits claiming malpractice against radiologists.

In February 2004, in Florida, a jury found two radiologists liable of failing to diagnose a plaintiff's breast cancer. Though three radiologists compared and read three mammograms as normal, nine months later the woman found a lump, which turned out to be malignant. She sued; she had an aggressive attorney, an empathetic jury, and won.

The leading cause for medical malpractice claims is failure to diagnose breast cancer on a mammogram. Experts in the field say such lawsuits mainly stem from serious misconceptions about the ability of mammograms to detect cancers and from an assumption that the radiologists who read mammograms should be able to see things that may be discernible only in hindsight. Leonard Berlin, M.D., chairman of radiology at Rush-Presbyterian-St. Luke's Medical Center in Chicago says the public has a highly inflated view of the accuracy of mammography. Radiologists across the country are faced with the prospect of litigation and the high cost of malpractice insurance, and are now refusing to read mammograms. Radiology residents are passing over specializing in breast imaging, and over 700 mammography centers across the United States have closed their doors in the last few years.

The current medical liability crisis in this country is real and is not going to magically disappear any time soon. One of the original goals of this book was to present an unbiased account of decreasing access to health care services, specifically mammography. Sources from all the players involved, physicians, liability insurers, and plaintiff and defense attorneys, were contacted and questioned regarding various aspects of the issue. Surprisingly or not several malpractice plaintiff attorneys declined to give interviews. One in particular answered questions presented to him, then reneged. In fact, he gave an honest opinion regarding the crisis, which most plaintiff attorneys believe is non-existent, and stated that "if mammography dies it will not be because of the lawsuits arising out of the destruction of the lives of those women and their families that have been betrayed." The Association of Trial Lawyers of America (ATLA) was also contacted for interviews; no response was forthcoming. This is one reason it made it difficult to present an unbiased view. No one from the ranks of plaintiff trial lawyers attempted to back their assertion of protecting America's malpractice "victims."

However, a former trial attorney, currently a law professor, gave some insight, closely paralleling those of the ATLA, into the current malpractice liability issue. It appears a moot point in any case, because these lawyers are very powerful, are set apart from most industries, and pretty much a law unto themselves. That does not mean it cannot change, however.

The information is presented in the book how it was researched. By that is meant as efficient and unfettered as possible; sources were checked for reliability, and a representation of all players was invited to participate.

However, there is such a plethora of information about mammography and breast cancer and their various aspects, each topic could not possibly have been written about comprehensively in one book, and probably would require volumes. The intent was to present an overall view of the most important aspects of breast cancer and mammography, and their relationship to malpractice litigation and the decrease in access to mammography.

There is a breast cancer crisis in this country, and unless something is done about it, it will be too late to save mammography, the only screening test currently available for detecting breast cancer.

 

13...from PaMPAC board member (and all-around terrific doctor AND advocate!) Dr. Marilyn Heine

Dear Colleague:

As a physician leader the following outstanding opportunities may be of interest to you.  Learn how you can make a difference.  Help solve critical issues in medicine:

* Skyrocketing Medical Liability Insurance Costs
* Falling Medicare and Medicaid Reimbursement Rates
* A Stumbling Managed Care System
* Stifling Government Regulation and Paperwork
* The Patient-Physician Relationship in Jeopardy
* Covering the Uninsured

Are you interested in running for public office?  If so, the Candidate Workshop is ideal for you.  Political experts guide you through deciding to run, assessing your district, fundraising and becoming a better speaker.

Would you like to be an expert campaign volunteer?  During the Campaign School you will participate in an intensive, hands-on curriculum with the nation’s top political consultants covering the fundamental tools for being a strong advocate for medicine, including strategy and message, targeting voters, and fundraising.

Register now for these renowned AMPAC programs.  Get the essential tools to be an effective candidate or campaign volunteer on behalf of organized medicine.  Graduates of the AMPAC Candidate and Campaign Schools have won election to offices across the country and have managed winning campaigns for candidates who share organized medicine’s agenda.

"The thoroughness and expert quality of AMPAC's Campaign School has been instrumental in my electoral success. For those considering a future in politics, this is the finest course for physicians, their families, and staff." The Honorable Tom Price, MD, US House of Representatives.

For more information, please read on, or contact Jim Wilson, AMPAC Manager of Political Education at jim.wilson@ama-assn.org or (202) 789-7465.  Enrollment is open to physicians, spouses, and federation staff.  There is no registration fee for AMA members, their spouses, or federation staff.  For qualified, first-time participants, AMPAC will subsidize lodging costs.  


For an application, please go to:
http://www.ama-assn.org/ama1/pub/upload/mm/399/poled_application.pdf
Marilyn Heine, MD
Pennsylvania
Member, AMPAC Board

 

AMPAC Candidate Workshop
February 17 - 19, 2006
Arlington, VA

Every election cycle hundreds of physicians and their spouses seek public office at various levels across the United States. Each candidate brings a unique set of skills and at the same time, shares a perspective that comes only from being involved on a daily basis with the practice of medicine.

At the Candidate Workshop, Republican and Democratic political experts share insider information about the mysteries of politics. You will learn how and when to make the decision to run; the secrets of effective fundraising; the role of the spouse and the family; and how to become a better public speaker. Get answers to your questions, and determine if running for public office is for you. Campaigning is a family affair, so bring your spouse.
 


AMPAC Campaign School
April 19 - 23, 2006
Arlington, VA

Recognized as one of the top programs in the country, this comprehensive educational experience will mold you into a winning political strategist. As a graduate of the AMPAC program, candidates will rely on you to give advice on strategy, message and campaign plans.

Attendees include physicians, spouses of physicians, residents and medical students interested in becoming more involved in politics. Participants range from those attracted to grassroots efforts to those considering becoming a candidate for public office. Participants possess the desire to make a difference for organized medicine by applying techniques learned at the Campaign School to political contests in their communities.

Insider tactics are taught by political training experts from both ends of the political spectrum. These professionals are the people currently advising and assisting campaigns at every level around the country.

During the five days, you will develop a new understanding of how campaigns are run. You will become an invaluable source of ideas and wisdom that can help your candidate reach voters, inspire them to commit to your candidate, and bring in the necessary contributions and votes

 

 

 

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